On Sept. 14, 2016, Swiss chemicals company Clariant AG announced that it intends to acquire two oil production chemical businesses. We now anticipate that Clariant's adjusted funds from operations (FFO)-to-debt ratio will be about 27% in 2016, down from 30% expected previously. At the same time, we recognize the company's improved cash flow generation and management's commitment to maintaining credit metrics commensurate with the rating. We are therefore affirming our 'BBB-' long-term corporate credit rating on Clariant. The negative outlook reflects the possibility that we may lower the rating on Clariant to 'BB+' over the next six months if we believe its FFO-to-debt ratio may not improve to about 30% on a sustainable basis in the near term, or absent
